Jones Day and Mayer Brown JSM have advised on global retail giant Toys "R" Us’ joint venture with Hong Kong-based Li & Fung Retailing.
Jones Day was the lead transaction counsel for the American toy chain, which acquired a 70 percent stake in its licensed business in Southeast Asia and Greater China that are currently operated by Hong Kong-listed Li & Fung.
Li & Fung was represented by Mayer Brown JSM, while Toys "R" Us engaged Thanathip & Partners and Raja, Darryl & Loh in Thailand and Malaysia respectively.
The terms of the agreement will allow Toys "R" Us to acquire the remaining 30 percent shares of the business in the future, allowing it to further expand in Asia. The joint venture owns 90 existing Toys "R" Us stores across Brunei, China, Hong Kong, Singapore, Thailand, Taiwan and Malaysia.
These retail outlets will be included in the operations of Toys "R" Us, thus increasing the company’s wholly owned international locations by 17 percent, according to its press statement.
"We believe there is significant growth opportunity for our company in this region, and we look forward to an aggressive expansion of our business in both existing and new Asian markets, including Northern China,” said Toys "R" Us Chief Executive Officer Jerry Storch in a statement.
The Jones Day team was drawn from its offices in Hong Kong, Singapore, Shanghai and Taipei, and it was led by partners Don Hess and Dennis Barsky who are based in Hong Kong and Singapore respectively.
Barsky said: "The transaction involved the efforts of a number of institutions and individuals spanning Asia and our representation of Toys "R" Us in both the acquisition an interest in the Asia-based business operated by Li & Fung and the acquisition of an interest in Stride Rite demonstrates our global strength in M&A."
Toys ‘R’ Us, Inc. is owned by its private equity sponsors, KKR, Bain Capital and Vornado Realty. ALB
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